Firms reject role as lambs’ for Brierley

Press, 21 December 1977, Page 6

Firms reject role as lambs’ for Brierley

The chairmen of the two companies being offered as “sacrificial lambs” yesterday stated their views on the merits of the proposal by Brierley Investments, Ltd, in no uncertain terms.

Mr W. B. Barnes, chairman of Printpac, said that Brierley Investments or its associates did not hold a “key” shareholding in Printpac. Mr Barnes said that in August last year Brierley’s agreed to limit its holding to no more than 20 per cent, except with the consent of the board.

“We have no reason, to date, to doubt this written: undertaking. While Brierlev’s interest should not be ignored, it is minority interest only. “We welcome Brierley’s expertise and connections but it does not control us nor does it exercise any significant influence on this company,” he said. A director of Brierley Investments, Mr S. J. Cushing, was appointed to the Printpac board last month but had not yet attended a meeting of the board. His appointment took place before Printpac was aware of the contents of Mr

Judge’s letter. The nine other! Printpac directors had no con-! nection with Brierley’s. Mr Barnes said. “At the time of the letter, therefore, Brierley’s had no inside information and Mr Judge can only have been speculating from information available to all the shareholders and to the investing public.” Printpac had no intention of reducing its retail activities by franchising or by other methods, said Mr Barnes.

Capital profits realised in the future “will not be available for siphoning off for the special advantage of any other group,” Mr Barnes said.

“The directors of this company do protect the interests of shareholders impartially and will ensure that all shareholders are fully and properly informed should there be any attempt by any company to acquire a 50 per cent interest by take-over bid. first come-first served offer, or any other manoeuvre.” The chairman of Allied Press, (Mr C. L. Nees) said yesterday that Brierley Investments was mistaken “if it really believes that any company could quietly buy a

major shareholding in Allied Press at today’s depressed share prices, and then strip the company of its valuable assets for its own private purposes and profit. “Those purposes apparently are to finance the gaining of control of another soundly based company by using our money, and in the .process picking up ownership and control of our local newspapers. It would be surprising if Kempthome Prosi ser fell for that blandishment,” Mr Nees said. “Our shareholders know that Allied Press does have considerable financial strength. The directors will see that that strength is used for the long-term benefit of shareholders and not for stripping by a company-raider out to make a quick profit at somebody else’s expense. “At this stage we have no knowledge of any Brierley investment or connection with our company. It appears that Brierley’s is saying that, in its opinion, Allied Press is another very good Dunedin company in which to hold shares. We agree,” Mr Nees said.